The Principal Financial Group®, the nation's 401(k) leader, commissioned Harris Interactive® to conduct online research with employed US adults (ages 18+) of small and mid-sized U.S. businesses (firm size 10 - 1,000 employees) about their attitudes and perceptions regarding their financial well being and their current employee benefits. Harris Interactive conducted The Principal Financial Well-Being Index survey of 1,374 employees from January 31-February 8, 2006. Data were weighted to be representative of the total population of employed adults who work for small or mid-sized U.S. businesses on the basis of age by gender, education, race/ethnicity, region income and propensity to be online. With a probability sample of this size, one can say with 95% certainty that the results have a sampling error of ± 3 percentage points; however, this was not a probability sample. This is one in a series of quarterly studies to identify and track changes in the workplace of small and mid-sized (growing) businesses.

Summary of Key Findings

Income Tax Refunds - Among those who have a feeling for whether or not to expect a state or federal tax refund for 2005, 84% expect to receive a refund. There have been some significant changes in what respondents plan to do with the refund since first quarter of 2003, the last time this question was asked. In 2006, employees are significantly less likely than they were in 2003 to say they will use the refund to pay down or pay off short-term debts (although it is still the most frequently mentioned option) or to spend the money on a big ticket item. When compared with 2003, there has been a significant increase in the percentage that plan to save or invest the refund (38% in 2006 compared to 31% in 2003).

Flexible Spending Accounts - Fifteen percent of the respondents participated in a Flexible Spending Account in 2005. With a Flexible Spending Account, any unused funds remaining at the end of the year are forfeited. Of the respondents who did participate in a flexible spending account, 44% had actual expenses within $100 of their estimate. Thirty-nine percent underestimated their actual expenses and 16% overestimated what they would actually spend.

Disability Income - Based on a list of potential negative events, over half (51%) of the respondents feel that none of the events is likely to happen to them during the course of a year. This is a significant increase since 2nd quarter 2004 (37%) when this question was last asked. However, when asked if they have ever been in an accident or had an illness that caused them to be out of work for an extended period of time, there has been a significant increase since 2nd quarter 2004 (14% vs 11%). Respondents are most likely to rely on workplace disability insurance benefits (41%), spouse or family (33%), personal savings (26%) or withdrawing from retirement savings (16%) if they become disabled or were unable to be employed in their current job.

Roth 401(k)/403(b) - Over half (56%) of the respondents have heard of a Roth 401(k) or 403(b) prior to this survey. There is a relatively high level of interest in the Roth 401(k) or 403(b) with 68% saying they would be interested if their employer offered it. Ten percent of the employees say their companies with 10-1000 employees are offering it this year (however 37% of the respondents are unsure if their employer offers it or not.). Sixty-two percent of the employees whose company offers the Roth 401(k) or 403(b) are participating.

Benefits - The availability of most benefits has remained fairly consistent when compared to 1st quarter 2005. However, there has been a significant decline in the availability of the following benefits offered at 10-1,000 employee firms: Health Insurance and Tuition Reimbursement. Employees continue to rate health insurance as the most important benefit, followed by Defined Contribution Plans and then Defined Benefit Plans and Disability Insurance. Health insurance is the benefit most employees would like to see their company improve upon. Compared to 1st quarter 2005, there have been some significant increases in benefit satisfaction for Defined Contribution plans, Disability Insurance and Health Insurance.

Benefit Programs Offered at Businesses with 10 to 1,000 Employees
In Table 1 below, comparisons can be made with 4 previous year's benefit offerings. There are some significant differences between responses from this most recent quarter and 1st quarter 2005 - indicated with "SIG" below.

Benefit Satisfaction
Upon identifying what benefits they are being offered through their employers, employees were asked to rate their satisfaction with some of the major benefits. Employees are most satisfied (rating of 8, 9 or 10 on a 10 point scale) with their defined contribution plan (57%), disability insurance (51%), defined benefit plan (50%), and their stock options (50%). In comparing this quarter's results with previous years, there are notable differences in satisfaction levels for a variety of benefits indicated with "SIG". Three benefits had a significant increase in satisfaction this quarter - Defined Contribution Plans, Disability Insurance and Health Insurance when compared with 1st quarter 2005. Table 2 illustrates all benefits listed and ratings.

Table 2"Although you may have mentioned more than appear below, you indicated that you have the following benefit program(s) through your company. Using a scale from "1" to "10", where "1" means Not At All Satisfied and "10" means Very Satisfied, please indicate how satisfied you are with each benefit program."

Percentages included in chart represent those rating satisfaction as an 8, 9 or 10.

Base: varies by benefit offered by employer

Satisfaction with Benefit

1 Qtr 2006

1 Qtr 2005

1 Qtr 2004

1 Qtr 2003

1 Qtr 2002

Defined Contribution Plans (N=833)

57%SIG

48%SIG

43%

40%

50%

Disability Insurance (N=590)

51%SIG

44%SIG

38%

42%

47%

Defined Benefit Plans (N=274)

50%

52%

46%

54%

57%

Stock Options (N=102)

50%

43%

32%

44%

30%

Profit Sharing/Bonus (N=303)

49%

55%

38%

38%

38%

Life Insurance (N=855)

49%

48%

40%

42%

50%

Health Insurance (N=1192)

45%SIG

40%SIG

35%

39%

47%

SIG - varies significantly (95% level) from comparison

Each employee respondent was asked to identify what benefits they would most like their employers to offer, aside from those already offered. As Table 3 shows, consistently we have seen defined benefit plans, profit sharing/bonus plans, and flexible work schedules topping the list of those desired.

Table 3"Which one employee benefit do you most wish that your company would offer you (excluding vacation and holidays)?"

Base: N=1373 employed U.S. adults in firms of 10-1,000 employees

Ranking

Benefits

1 Qtr 2006

1 Qtr 2005

1 Qtr 2004

1 Qtr 2003

1 Qtr 2002

1

Defined Benefit Pension Plan

21%

22%

22%

17%

23%

2

Profit Sharing/Bonus Plan

14%

14%

16%

11%

15%

3

Flex time

11%

11%

13%

11%

13%

4

Defined Contribution Plan

7%

9%

7%

7%

4%

4

Tuition Reimbursement

7%

8%

8%

9%

7%

5

On-Site Day Care

5%

4%

3%

4%

4%

Aside from those benefits employees would like to see added to their employer's benefit programs, they were also asked to identify what benefits they would like to have improved upon. The top 2 benefits mentioned are health insurance (43%) and defined contribution plans (13%) - see Table 4 for additional detail.

Table 4"Which one employee benefit (excluding vacation and holidays) do you most wish that your company would improve upon?"

Base: N= 1374 employed U.S. adults in firms of 10-1,000 employees

Ranking

Benefits

1 Qtr 2006

1 Qtr 2005

1 Qtr 2001

1

Health Insurance

43%

43%

40%

2

Defined Contribution Plan

13%SIG

16%SIG

25%

3

Profit Sharing/Bonus Plan

6%

5%

9%

4

Defined Benefit Plan

5%SIG

3%SIG

4%

5

Life Insurance

3%

3%

2%

5

Flex time

3%

3%

2%

Health Coverage Changes
As noted above, health insurance is the top benefit employees would like their employer to improve upon. To better understand what types of changes employees have seen recently in their health coverage, employees were asked to select from a list those changes they've seen in the past 12 months. As illustrated in Table 5, the largest proportion of employees have seen increases in co-pays (39%), deductibles (32%), and reduced medical benefit coverage options (14%). In comparing this quarter's results with those of 1st quarter 2005, there have been no significant changes.

Table 5"Over the past 12 months, has your employer made any of the following changes in your health care coverage?"

Benefit Importance
All employee respondents were asked to rate a group of benefits in terms of how important they are on a 10-point scale with 10 being "Very Important." As shown in Table 6, two benefits (Health Insurance and Defined Contribution Plans) have seen significantly lower importance levels this quarter compared to last quarter (based on top 3 box importance ratings). Even though they have declined significantly in importance, they are still rated as the top two most important benefits.

Table 6"Using a scale from "1" to "10", where "1" means Not At All Important and "10" means Very Important, please indicate how important each benefit program is to you."

Percentages included in chart represent those rating importance as an 8, 9 or 10.

Base: 1374 employed U.S. adults in firms of 10-1,000 employees

1 Qtr 2006

1 Qtr 2005

1 Qtr 2004

1 Qtr 2003

Health Insurance

86%SIG

89%SIG

92%

88%

Defined Contribution

68%SIG

73%SIG

74%

70%

Disability Insurance

55%

53%

58%

56%

Defined Benefit Plans

55%

56%

59%

57%

Life Insurance

50%

47%

53%

54%

Profit-Sharing/Bonus

44%

45%

47%

41%

Stock Options

20%

19%

20%

18%

SIG - varies significantly (95% level) from comparison

Benefits for Recruiting & Retention
Firms with 10 to 1,000 employees offer employee benefits to aid in the recruiting and retaining of quality employees. To measure how employees react to the presence of good employee benefits, a series of agree statements were asked. There was a significant decrease in the proportion of employees who agree that a good employee benefits plan encourages them to work harder and perform better - see table 7.

Table 7"Please indicate the extent to which you agree or disagree with the following statements . . ."

Base: 1374 employed U.S. adults in firms of 10-1,000 employees

Trending Comparison(% of respondents agreeing completely or somewhat)

1 Qtr 2006

1 Qtr 2005

1 Qtr 2004

1 Qtr 2003

1 Qtr 2001

Having a good employee benefits plan encourages me to work harder and perform better.

62%SIG

67%SIG

71%

64%

59%

Having a good employee benefits plan keeps me working for my current company.

59%

62%

60%

62%

75%

My company is concerned about my long-term financial future.

25%

26%

25%

26%

28%

SIG - varies significantly (95% level) from comparison

Employee Financial Well Being
In measuring employees' attitudes and perceptions about their financial well-being, a series of different questions were asked. First they were asked to identify how much they agreed with some statements relating to how concerned they are about their long-term financial future and how happy they are about their current well-being. There were no statistically significant changes in this year's results when compared with last year. According to Table 8, 73% somewhat or completely agree they are very concerned about their long-term financial future, while 27% of employees somewhat or completely agree that they are extremely happy with their current financial well-being. Three in ten somewhat or completely agree that they have not yet planned for retirement savings or security.

Table 8"Please indicate the extent to which you agree or disagree with the following statements . . ."

Base: 1374 employed U.S. adults in firms of 10-1,000 employees

(% of respondents agreeing completely or somewhat)

1 Qtr 2006

1 Qtr 2005

1 Qtr 2004

1 Qtr 2003

I am very concerned about my long-term financial future.

73%

75%

76%

75%

I am extremely happy about my current financial well-being.

27%

27%

34%

25%

I have not yet planned for retirement savings/security.

30%

28%

26%

27%

Job Security
Job security continues to top the importance chart when compared to long-term financial future and challenging work. In reviewing responses from the previous year's, there has been an increase in how many employees rate long-term financial future as #1 in importance - 40% in 1st Quarter 2006 and 36% in 1st Quarter 2005. Challenging work saw a significant decline from 2005 to 2006.

Table 9"Please rank the following items in terms of how important it is to you."

Base: 1374 employed U.S. adults in firms of 10-1,000 employees

Respondent Ranked Item #1

1 Qtr 2006

1 Qtr 2005

1 Qtr 2004

1 Qtr 2003

1 Qtr 2002

Job Security

47%

47%

52%

49%

50%

Long-Term Financial Future

40%SIG

36%SIG

31%

35%

32%

Challenging Work

13%SIG

17%SIG

17%

16%

17%

SIG - varies significantly (95% level) from comparison

Investment Changes
Changing market conditions can spur some individuals to make changes to their investments. To measure what type of changes employees are making, they were asked to identify if and how they are moving their retirement savings. Based upon response, a significantly higher percentage (75%) of employees who have retirement savings are not making changes to how their investments are invested than last year at this time. Twenty-five percent of the respondents who have retirement savings are making changes with 16% moving to stable investments and 9% to more volatile investments. There was a significant decline in the percentage of respondents moving from more volatile to more stable investments in 2006 when compared to 2005.

Table 10"Given the current stock market and economic conditions, have you made changes in how you have your retirement savings invested - moving from volatile investments to more stable investments."

Base: N=1374 employed U.S. adults in firms of 10-1,000 employees with retirement savings

1 Qtr 2006

1 Qtr 2005

1 Qtr 2004

Yes - I moved from more volatile to more stable investments

16%SIG

22%SIG

19%

Yes - I moved from more stable investments to more volatile investments

9%

9%

8%

No - I have not made any changes

75%SIG

70%SIG

73%

N=1101

N=916

N=577

Pension Plan Changes
There has recently been news of companies freezing or ending their defined benefit plans. We wanted to see if it has been happening to employees in companies of 10-1000 employees. Table 11 shows four percent of the respondents have had their defined benefit plans frozen or ended within the past year. Forty percent of the respondents have never had a defined benefit plan and six percent haven't had a defined benefit plan for over a year. Almost half have not had their defined benefit plan frozen or ended in the past year.

We asked respondents who have had their pension plan frozen within the past year if their company offered any other programs or services to help prepare for retirement. The services or programs most frequently offered were automatic enrollment for defined contribution plans/401(k) (21%) and increased company matches for defined contribution plans/401(k) (21%).

Table 12"Has your company added any other programs or services to help you prepare for retirement?" (select all that apply)

Base: N=46* U.S. Adults age 18+ who have had their pension frozen in the past year

Financial planning advice or guidance on site at company, via the phone or web, etc

14%

None of these

35%

* Small base. Data should be used directionally.

Income Tax Refunds
Among those who have a feeling for whether or not they will receive a federal or state tax refund for 2005, 84% expect to receive a refund. There has been no significant change since first quarter of 2003, the last time this question was asked. There have been some significant changes in what respondents plan to do with the refund. They are significantly less likely to use the refund to pay down or pay off short-term debts (however these are the most frequently mentioned) or to spend the money on a big ticket item. There has been a significant increase in the percentage that plan to save or invest the refund.

Table 13"Do you expect to receive a federal or state tax refund for 2005?"

Base: N=employed U.S. adults in firms of 10-1,000 employees who have a feeling for whether or not they will receive a federal or state tax refund for 2005.

1 Qtr 2006

1 Qtr 2003

Yes

84%

83%

No

16%

17%

N=1145

N=975

Table 14"What do you plan to do with your tax refund?" (select all that apply)

Base: employed U.S. adults in firms of 10-1,000 employees who expect to receive a refund

1 Qtr 2006

1 Qtr 2003

Pay down or pay off short-term debts

44%SIG

50%SIG

Save or invest the refund

38%SIG

31%SIG

Pay down or pay off longer-term debts.

17%

14%

Spend on consumer products - clothing, electronics, etc.

16%

14%

Spend on a big ticket item

7%SIG

16%SIG

Other

10%

13%

Not Sure

8%

N/A

N=945

N=740

SIG - varies significantly (95% level) from comparison

Flexible Spending Accounts
Employees in companies with 10-1,000 employees were asked if they participated in a flexible spending account in 2005. Fifteen percent of the respondents did participate.

Table 15"Did you participate in a flexible spending account in 2005?"

Base: N=1374 employed U.S. adults in firms of 10-1,000 employees

1 Qtr 2006

Yes

15%

No

85%

A flexible spending account requires employees who participate to designate before tax dollars toward reimbursement accounts. Any unused funds remaining at the end of the year are forfeited. This means it is important to estimate your expenses carefully. We asked the respondents who did participate in a flexible spending account how accurate they were in their estimate. As illustrated in Table 16, 44% had actual expenses within $100 of their estimate. Thirty-nine percent underestimated their actual expenses and 16% overestimated what they would actually spend.

Base: N=193 employed U.S. adults in firms of 10-1,000 employees who participated in flexible spending in 2005

1 Qtr 2006

Overestimated what I would spend by over $500

4%

Overestimated what I would spend by $251-$500

5%

Overestimated what I would spend by $101-$250

8%

Estimate was within $100 of actual expenses

44%

Underestimated what I would spend by $101-$250

14%

Underestimated what I would spend by $251-$500

15%

Underestimated what I would spend by over $500

10%

Corporate Bonuses
One in four respondents received a corporate bonus for 2005. As shown in Table 18, the bonus was most often used to pay down or pay off short term debts (35%), purchase gifts during the holiday season (31%) and saved or invested (24%), similar to the responses for the planned uses of the tax refund.

Table 17""Did you receive a corporate bonus for 2005?"
Base: N=1374 employed U.S. adults in firms of 10-1,000 employees

1 Qtr 2006

Yes

25%

No

75%

Table 18"How did you use it?" Select all that apply.

Base: N=290 employed U.S. adults in firms of 10-1,000 employees who did receive a corporate bonus for 2005

1 Qtr 2006

Pay down or pay off short-term debts

35%

Purchased gifts during the holiday season

31%

Save or invest the bonus

24%

Spend on consumer products - clothing, electronics, etc.

17%

Haven't spent it yet

11%

Pay down or pay off longer-term debts

6%

Spend on a big ticket item

3%

Other

7%

Not Sure

2%

Disability Income Insurance
Respondents were provided a list of potential things that could happen and asked which is most likely to happen over the course of a year. Just over half (51%) said none of these things are most likely to happen over the course of a year which is significantly higher than the last time this question was asked on the survey which was 2nd quarter of 2004.

Table 19"Which of the following do you believe is most likely to happen during the course of a year?"

Base: Employed U.S. adults in firms of 10-1,000 employees

1 Qtr 2006

2 Qtr 2004

You see a doctor for stress, anxiety or depression

24%

21%

You are involved in a motor vehicle accident

15%SIG

26%SIG

You suffer a bad back that keeps you out of work

8%

10%

You become seriously ill or die

2%SIG

5%SIG

Your house burns down

1%

-

None of these

51%SIG

37%SIG

N=1374

N=1307

SIG - varies significantly (95% level) from comparison

Females are significantly more likely to believe they will need to see a doctor for stress, anxiety, or depression (32%) than males (18%).

Males are significantly more likely to believe they will be involved in a motor vehicle accident (19% vs 11%), suffer a bad back that keeps them out of work (10% vs 5%), or become seriously ill or die (3% vs 1%) than females.

Approximately one in five (21%) respondents feel very or somewhat knowledgeable about individually owned disability income insurance. Just over half (53%) feel very or somewhat unknowledgeable.

Table 20"How knowledgeable do you feel about individually owned disability income insurance?"

Base: Employed U.S. adults in firms of 10-1,000 employees

1 Qtr 2006

2 Qtr 2004

Very knowledgeable

3%

3%

Somewhat knowledgeable

18%

16%

Neither knowledgeable or unknowledgeable

26%

23%

Somewhat unknowledgeable

24%

26%

Very unknowledgeable

29%SIG

33%SIG

N=1374

N=1307

SIG - varies significantly (95% level) from comparison

Significantly more respondents have had an accident or illness that caused them to be out of work for an extended period of time (14%) than when this question was last asked in 2nd quarter 2004.

Table 21"Have you ever been in an accident or had an illness that caused you to be out of work for an extended period of time (more than three months)?"

Base: Employed U.S. adults in firms of 10-1,000 employees

1 Qtr 2006

2 Qtr 2004

Yes

14%SIG

11%SIG

No

86%SIG

89%SIG

N=1374

N=1307

SIG - varies significantly (95% level) from comparison

Significantly fewer employees age 18-34 (8%) say they have had an accident or illness that has caused them to miss work for an extended period of time than employees in the older age groups of 35-44 (17%), 45-55 (17%) and 55+ (19%).

Table 22"What do you think is your likelihood of becoming disabled due to an accident or illness and being unable to work for an extended period of time (more than three months) during your lifetime?"

N= Respondents who have not had an accident or illness that caused them to miss work for an extended period of time

1 Qtr 2006

2 Qtr 2004

Very likely

5%SIG

2%SIG

Somewhat likely

20%SIG

14%SIG

Neither likely or unlikely

33%

36%

Somewhat unlikely

27%

29%

Very unlikely

16%

19%

N=1177

N=1161

SIG - varies significantly (95% level) from comparison

Respondents have a greater level of uncertainty on how they would financially maintain their current standard of living if they were to become disabled with one-quarter responding they are "Not sure". A significantly smaller percentage of respondents in 2006 replied they would be withdrawing money from savings or taking a hardship withdrawal from their retirement savings than in 2004.

Table 23"If you became disabled and were unable to be employed in your current job, which of the following best represents how you would financially maintain your current standard of living?" Please select all that apply.

Females are significantly more likely to say they are concerned about covering monthly expenses (49% vs 39%) and reducing credit card debt or other short-term debt (45% vs 37%) than males.

Real Estate Market - There has been much discussion lately about the real estate market and if the bubble has burst or if it is still going strong. Employees were asked when is the best time to purchase a new home. Three out of five responded that it was in the past. A significantly smaller portion (17%) said it is in the present than when we last asked this question in 3rd quarter of 2005. Table 26 shows the specific breakdowns.

Additionally, respondents were asked if they or someone they know has purchased a home with the principal intent of selling it for a short time later. Twenty-three percent responded with a "yes" which was significantly fewer than in 3rd quarter 2005. See Table 27 for details.

Employees were also asked if they had personally delayed selling a home based on the real estate market and the potential impact that decision has had on their retirement date. See Tables 28 and 29 for details.

Table 26"Would you say the best time to purchase a new home . . .?"

Base: Employed U.S. adults in firms of 10-1,000 employees

1 Qtr 2006

3 Qtr 2005

Was in the past

60%

59%

Is in the present

17%SIG

24%SIG

Will be in the future

24%SIG

16%SIG

N=1374

N=1147

SIG - varies significantly (95% level) from comparison

Table 27"Have you or has someone you know, purchased a home with the principal intent of selling it for a profit a short time later?"

Base: Employed U.S. adults in firms of 10-1,000 employees

1 Qtr 2006

3 Qtr 2005

Yes

23%SIG

27%SIG

No

77%SIG

73%SIG

N=1374

N=1147

SIG - varies significantly (95% level) from comparison

Table 28"If you were planning on selling a home this year, have you decided to put off the sale because of the declining real estate market?"

Base: N=1374 employed U.S. adults in firms of 10-1,000 employees

1 Qtr 2006

Yes, I have decided to put off the sale based upon the market.

4%

No, the market hasn't impacted my decision to sell the home this year.

11%

I was not planning to sell a home this year.

85%

Table 29"Will this have any impact on when you are able to retire?"

Base: N=39* employed U.S. adults in firms of 10-1,000 employees who put off the sale of a house

1 Qtr 2006

No impact on estimated retirement.

63%

Yes, it will impact when I am able to retire.

37%

* Small base. Data should be used directionally.

Investment Outlook

Table 30"How are you feeling about your investment outlook for 2006 compared to 2005?"

Base: N=1374 employed U.S. adults in firms of 10-1,000 employees

1 Qtr 2006

More optimistic about my investment outlook in 2006

30%

Less optimistic about my investment outlook in 2006

19%

No change in my investment outlook

51%

Males (33%) are significantly more likely to say they are optimistic about their investment outlook in 2006 than females (26%).

Roth 401(k) and Roth 403(b)
Roth 401(k)'s and Roth 403(b)'s are an option employers can provide to their employees if they choose. Employees were asked a series of questions to help us better understand public awareness, availability and perception of the Roth 401(k) and Roth 403(b). As seen in Table 31, over half (56%) have heard of a Roth 401(k) or 403(b) prior to this survey. Table 32 shows there is a relatively high level of interest in the Roth 401(k) or 403(b) with 68% saying they would be interested if their employer offered it. Interest level is down from 72% in 4th quarter 2005.

Ten percent of employees say their companies with 10-1000 employees are offering it this year (however 37% of the respondents are unsure if their employer offers it or not.). 62% of the employees whose company offers the Roth 401(k) or 403(b) are participating.

Table 31"Beginning January 1, 2006, participants can designate a portion of their elective deferral contributions to a 401(k) or 403(b) plan as after-tax Roth elective deferral contributions that are includable in gross income. At qualified distribution, the Roth contributions, including earnings, are tax-free. It is up to your employer to decide whether or not to offer the Roth 401(k) or 403(b) option.

Prior to this survey, had you ever heard of a Roth 401(k) or a Roth 403(b)?"

Base: employed U.S. adults in firms of 10-1,000 employees

1 Qtr 2006

4 Qtr 2005

Yes

56%

58%

No

44%

42%

N=1374

N=1213

Table 32"Does the Roth 401(k) or Roth 403(b) sound like something you would be interested in if, it were offered by your employer?"

Base: employed U.S. adults in firms of 10-1,000 employees

1 Qtr 2006

4 Qtr 2005

Yes

68%SIG

72%SIG

No

32%SIG

28%SIG

N=1374

N=1213

SIG - varies significantly (95% level) from comparison

Employees age 55+ (59%) are significantly less likely to say they would be interested in a Roth 401(k) or 403(b) if it were offered by their employer than employees who are 35-44 years old (73%) and employees who are 18-34 years old (70%).

Table 35"How would you prefer to be educated about the Roth 401(k) or Roth 403(b) option if it were available through your employer?" Mark all that apply.

Base: employed U.S. adults in firms of 10-1,000 employees

1 Qtr 2006

4 Qtr 2005

Receive information from my employer

55%

58%

Do my own research

43%

44%

Receive information from my plan provider

36%SIG

47%SIG

Talk to a financial advisor

34%SIG

39%SIG

I am not interested in being educated about this

12%SIG

8%SIG

Other

2%

2%

N=1374

N=1213

SIG - varies significantly (95% level) from comparison

Females (60%) are significantly more likely to say they would prefer to receive information from their employer than males (50%).

Employees age 18-34 (28%) are significantly less likely to say they would prefer to receive information from their plan provider than employees in the older age groups of 35-44 (38%), 45-55 (40%) and 55+ (40%).

Only 17% of the respondents feel very or somewhat knowledgeable about the Roth 401(k) or Roth 403(b).

Table 36"How knowledgeable do you feel about the Roth 401(k) or Roth 403(b)?"